Scotts Miracle-Gro Company (SMG)
Operating profit margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 208,800 | -174,400 | -434,000 | 723,000 | 585,200 |
| Revenue | US$ in thousands | 3,553,100 | 3,371,900 | 3,804,700 | 4,835,700 | 4,051,100 |
| Operating profit margin | 5.88% | -5.17% | -11.41% | 14.95% | 14.45% |
September 30, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $208,800K ÷ $3,553,100K
= 5.88%
The operating profit margin of Scotts Miracle-Gro Company has displayed significant fluctuations over the past five years. In Sep 2024, the operating profit margin stood at 5.88%, indicating that the company generated a profit of 5.88 cents for every dollar of sales. This represents a notable improvement from the negative operating profit margins observed in the preceding two years, particularly in Sep 2023 when the company incurred a loss of 5.17% on its operations.
The negative operating profit margins in Sep 2023 and Sep 2022 suggest that the company's operating expenses were relatively high compared to its revenue during those periods. However, the recovery seen in Sep 2024 signifies that the company has managed to enhance its operational efficiency and profitability.
It is important to note that in both Sep 2021 and Sep 2020, Scotts Miracle-Gro Company achieved relatively strong operating profit margins of 14.95% and 14.45% respectively. These figures indicate that the company was able to effectively control its operating expenses and translate a significant portion of its sales into profits during those years.
Overall, the fluctuation in the operating profit margin of Scotts Miracle-Gro Company over the past five years underscores the importance of closely monitoring and managing operational efficiency and cost control measures to ensure sustainable profitability in the long term.
Peer comparison
Sep 30, 2024